Kivanniversary

[gement]

February 13th was the one year anniversary of my first loans on Kiva. This was closely followed by the more meaningful celebration of a full year on Kiva, my twelfth Credit Day. (Every month on the 15th, a pile of money flows back to the lenders.)

While I'm no longer in the first blush of obsession, I seem to be administering the loans for four other people. In addition, I just looked at the nifty complicated spreadsheet app that slices and dices all my numbers to discover that...

For the first time in a year, my lifetime repayments are greater than my lifetime new money. That's right, on average, every dollar I've put in has gone through the full loan cycle once. (For a while I was putting in money quickly enough that this day looked a very long way off.) I really did just clear it today, by $1.42.

As always, I'm happy to geek out about microfinance with anyone who will listen. Questions? I field them! Interested but not sure how to start? I'm good at getting people hooked.

Comments

[wcg.livejournal.com]

It's a very satisfying thing, that Kiva. I like it too.

[gement.livejournal.com]

I know! Every time I see you rattling the can, I smile.

[evilandi.livejournal.com]

So, yeah, I've looked at it a few times, but wasn't sure about it... How is it nifty and awesome?

[gement.livejournal.com]

So you know the "I just helped someone" hit that you can get from giving a present or getting a homeless person a sandwich or any of that class of activities?

I get a hit of that for $25, which is about the standard rate for charities. Later, unlike most deals, I get to hear about it more, and I get it back to do it again. Depending on the loan terms of the loans you like, $100 in the system will give you a fresh hit of happy-helper feeling every month or two.

There are a lot of microfinance places out there at this point, all of which work on the model of you (the lender) providing funding for an organization (MFI) that makes loans to someone in their country (the borrower). The thing that makes Kiva particularly compelling is that you are actually selecting from individual borrowers.

[ Some people find this either too hands-on or too paternalistic. If either of those hits your nerves, MicroPlace just says "here are some MFIs, fund them and get a little interest!" I know a couple people who are very happy with lending through MicroPlace. ]

Is it silly? Maybe. Does it all end up in approximately the same place? Yep. Does it cater to my monkey brain that wants to connect with individuals? You betcha.

And it keeps me lending, and it makes me smile all day when I've gone and made another loan.

(Similarly, you can "count" loans toward the progress of a team, which is completely meaningless but makes my silly tribalism brain chemistry dance up and down when GLBT edges past Belgium.)

So that's what I get out of it. Other people get other things.

[gement.livejournal.com]

The other half of the appeal, which I share with a non-zero but smaller section of the Kiva fandom, is the statistics. Do you know why I can tell you how often $100 gets recycled? Because I wrote a spreadsheet, from scratch, to tell me exactly that when someone gave me a $100 certificate last summer.

This is why I am now helping four other people pick loans. :) If you want some advice on filtering out some of the data noise, I can know all the noise for you. (Quick version that works for most casual lenders: Don't put more than $25 on each MFI. Past that, loan to what you like.)

[panther.livejournal.com]

I started Kiva around Yule. OMG it is wonderful watching the progress, and the loan money comes back fast!

[sistawendy.livejournal.com]

You're a virtuous and profitable banker. That makes you a rare commodity these days.

I wonder if Nibs has heard of Kiva. She'd be all over it like white on rice.

[gement.livejournal.com]

I'm not making any interest. :) But I do use phrases like "diversify" and "balance my portfolio" and "shared currency risk."

A Kiva gift certificate goes over very well with people in my experience, especially along with an offer to look through the site with the giftee and help them cut down the information to manageable highlights.

[hollyking.livejournal.com]

Interesting... I like this idea. I would love to talk about it sometime and find out more.

[hesperide.livejournal.com]

One day, when you concurrently have time and feel like being sociable with me, I would love to listen to you geek out on microfinance. There are some things I would very much like to learn, in part because I am fascinated, and in part because I am trying to think up some ways to finance my continued edumacation...

Joy to you!